President Medvedev has admitted that the investment climate in Russia remains “very bad” because of corruption and bureaucracy, and urged measures that would help to make the economy attractive to investors.
The Russian leader was speaking on Wednesday at a meeting of the commission for modernizing the Russian economy. Initially, the gathering was to be focused on problems of training engineers, but Medvedev suggested starting the session by discussing the investment climate instead.
The president stressed that in order to achieve the goal of modernizing the Russian economy, the country has to significantly increase the inflow of foreign investments. “We need investors’ interest and trust,” he stressed.
However, currently the investment climate is “very bad” and the “money is running away from our economy”. For many small companies the business conditions have only worsened in the past year due to higher insurance fees, increasing electricity prices, and Russia’s worst evil – corruption.
[The corruption] is not loosening its grip, but holding the economy by the throat,” Medvedev stated. The leader declared war on corruption at the very beginning of his presidency in 2008, but that uneasy battle has yet to be won.
Medvedev admitted that not many believe they can engage in safe and successful business in Russia, but, he stressed, it is time to change that. It is one of the key tasks for both the president and the government as bringing investment into the country and modernizing the economy makes people’s lives better.